Academic Research & Business Engagement

What skills, attributes and experience do managers require when working across the globe? According to a recent report in the Harvard Business Review, effective International Business Managers command what is termed a ‘Global Mindset’. The researchers interviewed more than 200 senior executives in the United States, Europe, and Asia, and surveyed more than 5,000 managers around the world to record the individual traits which shape the successful Intentional Business practitioner.

Global Mindset

Whilst there are many pitfalls, International Business can be extremely challenging and equally rewarding for business people with a global mindset. The report discusses the three main components of this mindset and are listed as:

Intellectual Capital

Social Capital

Psychological Capital

Intellectual Capital

Intellectual capital refers to the individual’s ability to learn coupled with a detailed knowledge of international markets and business. The report outlines two particular case studies of successful domestic business managers, but demonstrates a clear separation in their ability to succeed beyond their frontiers. Intellectual capital is a key component of this success but not the only factor.

Social Capital

Social capital, in my opinion is one of the most crucial elements in International Business and a Global Mindset, whether from a Coleman’s economist or Bourdieu’s sociologist perspective. Within the parameters of the Harvard Business Review article, social capital refers to the ability to develop relationships and influence specific stakeholders. These may be active within the micro and macro environment such as clients, suppliers or a government body.

Psychological Capital

Psychological capital is referred to as ‘openness to different cultures and the personal ability to adapt and change. Whilst Marcus Brody from the Indiana Jones films may not exhume such qualities at first glance, the Harvard Business Review article states that “the most effective international leaders are strong in all three dimensions”.

26 Responses to Making It Overseas: Why You Need to Have Cultural Capital & a Global Mindset | Harvard Business Review

I would totally agree with your article which states that it is very important to acquire Cultural Capital and Global Mind set in an International or Overseas business. It’s been proved that traditional way of doing International Business has become increasingly irrelevant due to absence of Global Mind set which would comprise the necessary skills and knowledge to deal with International Business. ( Journal Of World Business VL 34)

Managers who deal with Overseas Business should not only be capable of meeting the requirements of those assignments but should also be able to grasp knowledge about International Market, develop a sound relationship with stakeholders and should be capable of adapting changes and get used to different culture. (P.Haul)

As a Nigerian currently living in the U.K, I understand the importance of cultural capital; it is needed for any long time engagement in another country-studying abroad. Edward (1949) explained this using Americans transacting abroad as a case study. A significant difference was shown with American business men who understood the culture of the country and those who didn’t. This article dates far back as 1949 and is still very applicable in today’s globalised world. James and Craig, (1986) added that cultural capital gives remarkable insights to the locals who engage more with the foreigner as work is done effectively and efficiently as barriers are brought down. Cultural capital is very important.

Argyris reported his four-step Organisational change programme was unsuccessful due to the nature of the CEO’s innate ability to control his behaviour with co-workers which in effect undermined the change programmes goals.

In the first process of change, management by objectives: each manager had their own way of succeeding, of which caused fluctuations in the plan therefore leading to confusion.

Secondly, confrontation meetings: The meetings caused deep disappointment where the managers were criticised, leaving them feeling vulnerable due to honest criticisms.

Thirdly, experimental learning – No CEO’s behaviour was the type to encourage organisational development of which non was invited to share responsibilities which support the change from one organisational state to another.

Finally organisational development was the CEO’s to incorporate their new behaviour with the new values. It was not effective due to the simple fact that CEO’s had not been trained to implement their theory into real life work.

In conclusion, i personally believe that all areas of organisational hierarchy should collaborate together and plan each change process or organisational development bit-by-bit. Therefore, change process begins when theory and practically have been tamed.

I agree with your article that intellectual capital, social capital and psychological capital develop global mindset among people in an international business.Global leadership expansion must be focused by an organization’s global business strategy. Having ”global” experiences at work does not guarantee helpful global leadership. The achievement of a true global mindset enables leadership efficiency in a global capability (L. Stephen, 2010). Global leaders must understand how they comprehended in various contexts by many different people. It is recommended that global leaders require being open-minded and non-judgemental to view the difficulty of information. Furthermore, individuals likely to succeed as global leaders reveal curiosity which prompts leaders to enjoy the procedure of learning (Dennis and Schon, 2008). As cultural and business difficulty increase so does the demand for a global mindset, almost exponentially given meet of this complex environment. Global leadership development includes examination, education, experience and exposure in a practical sense.

I agree with your article which states the importance of cultural capital and global mindset of the overseas business. For companies working on a global scale, developing a global business mindset presents a difficult managerial challenge. This mindset determines to what extent management encourages and values cultural diversity, while at the same time maintaining a certain degree of strategic consistency. Developing a global business mindset and a group of global managers as its main flag bearers has become a key requirement for successfully competing and growing in worldwide markets. Paul, Herbert (2000)
There are two strategies for succeeding in an international business first is developing cultural fluency and developing a global mindset. In today’s global business environment both of these strategies are useful in increasing intensity, time sensitivity and diversity. Personal learning in cross culture settings can be facilitated through social learning in succeeding abroad. An intercultural interaction is an opportunity for interdependent learning in which individuals both learn about each other’s culture and negotiate effective ways of relating in relatively short order. Nardon Luciara(2008)

The need to have cultural capital and a global mindset is very important in international business. According to (Maznevski and lane, 2003), “ global mindset is the ability to develop and interpret criteria for personal and business performance that are independent from the assumptions of a single country, culture, or context: and to implement those criteria appropriately in different countries, cultures and contexts’’. Therefore, the concept of global mindset represents an important competitive tool for today’s managers. Global leaders, therefore, must have the capacity to turn threats or stumbling blocks into opportunities; to motivate people to excel, to accelerate innovations in competitions; and to operate globally through cross-cultural problem solving and team building. This makes me agree on why you need to have cultural capital and global mindset overseas or internationally.

I am totally agreed with this article according to Harvard Business review on Making It Overseas: Why You Need to Have Cultural Capital & a Global Mindset?

Every organization is nowadays sending their employees to compete overseas assignments. Apart from that plenty of managers fail spectacularly in their expatriate assignments. In this article there are two simple examples showing success and failure in abroad roles. One is Alan and another one is Debra they both sent for performing globally from different companies to different locations. So they both performed differently and they got results according to their performance.

Where as Javidan, M., et al says that cross cultural leadership is not only about differences. According to them managers are facing extreme changes in cultural environment that’s why they are not getting success in their given task. Global mind-set is very important here because every individual working in international assignment they should definitely improve in their mind-set process. It’s very much important to be success in global tasks also to influence stakeholders by completing assignments on time. 3 main functions of global mind-set are Intellectual Capital, Psychological Capital and Social Capital, these three functions should be kept in mind for global mind-set before accepting global role.

I totally agree with your article that there is need to have Cultural and a Global Mind Set in any or rather all international business, because global mind set help us in adjusting to different environment. According to Mansour .J (2010) leaders with a strong stock of Global mind set will know about culture and political and economic system on other country and understand how global industry work.
Global mind set help mangers to increase leader’s effectiveness in influencing group and system that are unlike their own, of instance a China manger coming to Nigeria will have to understand the tradition and culture of the country the way of life and what motivate them, also the economic and political system.

I totally agree with this article. Global mindset is very important when we start the international business or overseas business. The main thing is to understand the values and importance of cultural capital. The leader plays important role in business. Good leaders have powerful supply of global mindset understand everything about international industry like cultures, political and economic systems in different countries and also understand the work of global industry. Globalised business depends on coordination of team. According to Govindarajan and Gupta (2001) they said the most important tool is the global business team means coordination and sharing business matters with each other and find good decision with the help of whole team. In the case of lack of coordination increases the chance of failure of global business.

Developing a global mindset is an essential value for employee, managers including that individual that are into businesses or are managing activities that span borders i.e. global product because they must deal with people from different countries or different cultures. In a situation where there is lack of a global mindset, the possibility of an assembly line workers building a global learning community will almost be impossible. According to this author they argued that for any company to capture and sustain global marked leadership in its industry. That company must absolutely regard the development of a global mindset as a goal that encompasses every unit and every employee in that company.

According to Milton Bennett(PhD) who is a leading authority in the field who design training program to develop intercultural skill for global corporation in the US, Asia and Europe said in one its interview that “a gain the value of diversity you need a program of training and coaching aimed at acquiring the benefits of diversity, rather than avoiding its difficulties” Milton Bennett (PhD)(2010)this statement is also what psychological capital is all about. I strongly agree that for any global business to success it has to adopt a global mindset which comprises of intellectual capital, psychological and social capital.

I totally agree with this article “making it overseas; why you need have cultural capital and a global mind set”

According to Mansour Javidan, Mary Teagarden and David Bowen Global Mindset is a “set of individual characteristics that help global leader’s better Influence individuals, groups, and organizations that are unlike them. The profile of Global Mindset consists of a critical combination of intellectual, Psychological and social capital:
• Intellectual Capital: Knowledge of global industry, cosmopolitan outlook, and cognitive complexity
• Psychological Capital: Passion for diversity, self-assurance, and quest for adventure

It is evident that many international business organisations try to be the part of that particular country in which they are incorporated. Doing business in the traditional way is largely irrelevant .There is a growing need for managers to become global managers with a global perspective and a global mind set. Managers have a number of mindsets that range from the domestically-oriented defender, and continuing on to the explorer, the controller, and the globally-oriented integrator. For global managers to be effective, they need to develop the global mindset of an integrator. A global mindset allows meaningful global strategizing that requires managers to effectively integrate the three global forces of (1) global business, (2) regional/country pressures, and (3) worldwide functions. A global mindset and a holistic global strategy should create conditions to build the worldwide organization characterized by specialization, interdependency, and coordination. A global outlook is a process of moving an organization’s structure, process, people, and culture from a set of highly autonomous business units to one that becomes an integrated and effective global network (Ben L. Kediaa and Ananda Mukherji)

Managerial experience and market characteristics are important drivers of the global mindset, which, in turn, is one of the key parameters of international performance (Canadian journal of administrative sciences)

International Assignments have become key to components of leadership and employee development.Still the statistics surrounding many companies expatriates success rates can be dismal.The success of expatriates largely depends on the person’s ability to influence individuals,groups and organizations with a different cultural perspective in the host country to achieve the company goals. Cross cultural adjustment is adjustment of expatriate with the job, host country nationals, and to general work and non work environment (Black, Stuart, and Stephens, 1989). Most of the effective global managers often suffer the most severe culture shock which is a natural response to the stress of immersing oneself in a new environment. Yavas and Bodur (1999) revealed that the following personal characteristics are exhibited by well adjusted expatriate managers:
Being culturally prepared for assignment
Being a culturally sensitive person
Ability to recognize complexities in host nationals
Liking to mix with host nationals
So it is the duty of Employers to nurture Global Mind set in Employees by developing certain personal attributes.In the present article Alan does not have the ability to build an trust in relationship and lack in the ability to leverage the knowledge to overcome the situations. Even I agree to this point that Managers should have the Intellectual capital,Social Capital and psychological capital while dealing in the different cultures.

I stronly support the topic that,international business managers should have global mindset,adaptibility towards sorrounding and current environment.
AS their is an ancient thought/quote of my country INDIA that ” JAISA DESH WAISA BHESH” which means that you should be dressed up according to the trend/country/culture/place you are currently in.

According to Alder and Bartholomen(1992) forien business deal is depended on the mindset,skill of the executive working on the deal.

Bartlett and Ghoshal(1989) state that the adapptability of norms,values,culture,heritage, by the top management of mncs,results in tremendous positive effect on company’s rep and business.

I agree that to be able to manage overseas, the manager needs his mindset and a cultural capital.
The mindset is concept defined a mental or physical abilities, talent or even intelligence that every single person can have on it. The mindset to be profitable has to be maintaining with training and effort. The intellectual, social and psychological capital found the mindset.
The cultural capital is a notion defined by Pierre Bourdieu (1930-2002) ,a French sociologist and philosopher, in 1987, as a amount of knowledge gain by the individual in his all live (in the family, in the scholar system, his education). This cultural capital could provide a social benefit to the person. He distinguishes three states in this cultural capital (Seoyon and Hyesun, 2008) :
• “an embodied state” : knowledge which was bring by the family environment
• “Objectives cultural goods”: cultural good such as CD, book or again movies….
• “Institutionalized cultural entitlement”: diplomas that could be valuable in the work market.
I think that in international business, people definitely; need to have a strong mindset and cultural capital. I consider them as tools for the business people to cope with any business situation. The cultural capital provides the status and the consideration while the mindset makes the difference between a businessman from another, the more persuasive, the best businessman.

One of the greatest challenges in today’s business is leading diverse, multicultural, globally situated teams of employees, partners, suppliers, agents and subcontractor. To lead effectively, global leaders must have a Global Mindset, cross cognitive and geographical space. Successful firms take full advantage of their investment in human capital by developing leadership potential during the organization with included programs that emphasize corporate values, crucial skills and competencies, knowledge management, succession planning, and a global mindset for business success. Global managers requires the development of five key global cultural competencies; cultural self-awareness, cultural consciousness, ability to lead multicultural teams, ability to negotiate across cultures and a global mindset (A.G., Cant, 2004).With combined leadership taking middle stage as the new concept in today’s global marketplace, organizations that strategically focus on building leadership capacity for the future will obtain the benefits in the years to come (R.Nancy, L., 2006). I strongly agree with your views on why you need to have global mindset when making it overseas/

I agreed with the article but i belive not only the Global Mindset is required but also things like Emotional connection with collegaues which concludes a) a sinceare interest in and concern for others b) an effort to realy listen to the workers and c) an understanding of different viewpoints of others.
Integrity and Duality also plays an vital role during an international assignment , Global managers embrace duality and integrity by managing uncertainity, essentially knowing when to act and when to gather information, even balancing tensions.
In the article of Nancy j Adler from the Mcgill university , the importance of Global market in the world is clarified. The corporate world is becoming more and more interelated and more international. The increased internationalisation means the increased interaction between employees and managers of different culture. In order to understand the meaning of the term global mindset, it is important first to achieve clarity regarding the underlying core concept of mindset. Generically the mindset concept has a lonGg history in the field of cognitive phsychology and more recently organization theory, where scholars have focused on the question of how people and organizations make sense of the world with which they interest ( Anil k Gupta and Vijay Govindargan 1996 ). Global managers have exceptionally open minds. They respect how different countries do things and they have the imagination to appericiate why they do them that way. But they are also incisive, they push the limits of the culture. Global managers don’t passively accept it when someone says ‘ you can’t do that in italy or spain because of the ministry of finance’. They sort through the debris of cultural excuses and find oppurtunities to innovate.
Based on the results of a three year study, researchers found that almost all companies claim that they need more global leaders and managers with more higher caliber and quality ( Hal B. Gregersen, Allen J, Morison and J stewart Black).

I agree with the opinion of this article, as an international student, I understand cultural capital plays a significant role on communication, it is a basic skill for global managers to deal with business issues as well. Furthermore, as you said, although Global Mindset has many pitfalls, International Business can be extremely challenging and equally rewarding for business people with a global mindset. That is factor on contemporary management, and the managers should have comprehensive capitals to adapt the complex environment.

N. Nummela et al (2009) explain that a global mindset means a manager’s openness to and awareness of cultural diversity and the ability to handle it. The reflection of Global Mindset is managers could handle issues proactively and visionary in the international environment.

P. Herbert (2001)prove it by saying “developing a global corporate mindset and a group of global managers as its main flag bearers has become a key prerequisite for successfully competing and growing in worldwide markets.”
To sum up, the key skill of managers is how to use global mindset to deals with challenges and risks in a global business.

According to Harvard Business Review:
When managers working across globally they should command global mind set .The Research have been done globally to record the individual trades. There are many pit falls. There are three main components of the global mind set i.e.1) Intellectual Capital: This refers to the individual ability to learn with a detailed knowledge of International Business & Markets. This is the key component but not the only factor. 2) Social Capital: This is the most crucial element in Global mind set. This refers to the ability to develop relationships and influence these stack holders. They may be active in the micro & macro environment such as Government Body etc.3) Psychological Capital: This is refer as identity to different cultures and personal ability to adapt and change.

Considering the relentless pace with which the world is moving towards globalization it has almost become mandatory for businesses that have the urge to explore other parts of the world to be in the right frame of mind to go global or to have a ‘global mindset’. As you mentioned that it can be extremely challenging and equally rewarding or perhaps more than equally rewarding for people who have that mindset. Solmon and Schell (2009) define global mindset as the ability to see global opportunities intuitively enabling those who have it to work effectively wherever they are in the world. I think the more you master those abilities the less challenging it becomes. Significant knowledge of the potential market is probably the first important step towards going global; the term ‘intellectual capital’ defines that immaculately. Solmon and Schell (2009) also describe it as an increasingly critical corporate asset and the ultimate resource necessary for success. Adapting to different cultures plays a pivotal role in global businesses because you`re less likely to succeed if you`re not open to changes and understanding different norms and values which brings us back to the initial argument of global mindset. Hence psychological capital is considered a key asset. The same can be said for social capital as it’s hard to imagine an organization achieving its global goals without sound social networks. Taylor (2007) mentions it as the sum of the actual and potential resources embedded within, available through, and derived from the network of relationships possessed by an individual or social unit. So although these three may be the most essential factors for a company going global, more research can always lead us to more shortcomings of such methods e.g. developing social capital in multiple social capital settings.

I am totally agreeing with your article “WHY YOU NEED TO HAVE CULTURAL CAPITAL AND A GLOBAL MINDSET”. Successful business people from all over the world are competing for top positions in international organisations. Global mindset is essential for international managers who had dealings with international firms. Mansour Javidan, Mary Teagarden, and David Bowen ware wrote an article “managing yourself: Making It Overseas”.

They did a small research on two successful managers. Those two names are ‘Alan’ and ‘Debra’. Alan is a rising star at a U.S.-based manufacturer company and he appointed in Beijing, as a general manager for consumer products in China. Other one ‘Debra’ was gone to Brazil for same assignment. She had successes in her task, but ‘Alan’ failed because lack of global mindset. On the basis of his example Intellectual Capital, Social Capital and Psychological Capitals are essential to the global mindset.

The need for Global Mindset have been significantly inreasing and have also been recognised worlwide. Global mind set appears as key source of long term competitive advanatage. As globalization intensifies, MNCs are subjected to simultaneous and often conflicting pressures for global integration and local responsiveness. This demands managers to have all a good view of Global Mindset and should be capable of integrating and co-ordinating geographically dispersed operations and culturally diverse workforce. (Prahalad and Doz, 1987; Bartlett and
Ghoshal, 1990; Doz et al., 2001).

It is very important for the managers to be have a very good knowledge on international market to have a good relatioship with the stakeholders and also it is equally importatnt to get adjusted to the different culture and develop strategies which is feasible and accepatble to the subsidiary country. These factors itself sduggest that why it is ncessary to have a cultural capital and Global Mindset.

The business environment has evolved due to globalisation by Multinational Corporations (MNCs), shaping the way businesses are managed. I share the same view as Javidan et al (2010) that, having a global mindset is essential for an individual to succeed as a manager or head of an organisation. I consider a global mindset to be a pre-requisite for success.

Roger, E. M and Blonski, D (2010) mentioned in their article that, an integration of multiple geographies, cultures, nationalities, ages and styles (Global mindset) in enterprises around the world has an enormous impact on business relationships and its success.

Similarly, Schon, B and Dennis, B (2008) also suggest that, global leaders ought to be opened minded adding that, leaders likely to succeed are those who demonstrate inquisitiveness which prompts them to enjoy the learning process.

Alan in the article by Javidan et al (2010) from all indications lacked a global minset as well as that inquisitiveness to learn. As a manager adaptation is important in every work environment and from a true life sceniro, I found that having a global mindset helps a manager earn respect from their subordinates and with time they also learn to return the respect back. It is a two way thing.

I) Agreements with the idea of “Global Mindset” according to Mansour Javidan, Mary Teagarden and David Bowen:

a) Intellectual Capital:

Yes, global workers have to build up a certain amount of notions and information about the country they will have to work in.
According to Kedia, B. L. and Mukherji, A. (1999,p6) “(…) to sustain and develop a global mindset, a manager also needs knowledge and skills.”
A manager for example has to know what the differences in terms of management in China are. And this knowledge has to be acquired before taking the position.
If this first step is not done, it could have negative consequences.
The first impression has a huge importance. The first step as a foreigner in a company is critical. These are the moments when managers can do the first mistakes. They may misdirect a mission or disrespect their staff.

b) Social capital:

As a foreigner you have to develop a certain network to keep good relation with your co-workers and help you in your mission.
According to Rogers, M.E. and Blonski, D. (2010, p2) “Creating relationships of trust by developing keen insight and respect for difference (…)” is one of the aspect of a global manager.
A manager will be able to resolve problem if he has a good ability to listen and observe. By being a good listener he may find agreement among a diverse group.

To conclude a good global manager is also a good leader.

c) Psychological capital:

A good psychological index could be that a manager should be “less risk averse and resistant to change” (Numella et Al, 2004, p3).
The quality to be open-minded and tolerant will also allow the manager to fully understand the new work environment. The way he adapts to this new rules and values may have a competitive advantage to achieve his goal quicker.

II)How can I challenge this concept and complete it:

In my opinion some aspects of the global mindset are not in the concept of the writers. They do not take into account the motivation and the experience of the managers in terms of global management.
Numella et Al (2009, p3) develop the idea that a good global manager have already experience in foreign countries.

Conclusion:

To conclude I think that the concept of global mindset developed by M. Javidan, M. Teagarden and D. Bowen is a good framework to understand what makes a good global manager.
But it fails to give enough details and might not be complete as it excludes some other factors which are relevant, such as experience.

Globalisation has led to an increase in transnational and cross continental companies operating in different parts of the world with stark differences in culture, legal systems and attitude towards work. This obviously leads to huge challenges in management as businesses environment teams have become more culturally diverse requiring a different demographical and cultural approach in term of management depending on location.

Mansour Javidan’s “Global Mindset” approach is a vital prerequisite to doing business beyond one’s own borders. Other academics have defined a global mindset as:
“The ability to develop and interpret criteria for personal and business performance that are independent from assumptions of a single country, culture or context and to implement those criteria appropriately in different counties, cultures or context.” (Maznevski and Lane, 2003)
In the 21st century, it is vital that business leaders have the ability not just to understand but to blend in with different cultures. What may be successful in one’s own home market may not be successful in another country. So in order to determine what strategy to implement, managers of outsourced businesses must have the ability to appreciate complexities across different cultures, be adaptive and implement a more diplomatic approach in management.
This concept is applicable not just to individuals but the also the Organisations they represent. Multination organisations must also adapt to a multinational approach and strategies (Bartlett, C. A.; Ghoshal, S. (1989). “Managing Across Borders: The Transnational Solution”. Harvard Business School Press.

I agree with this article. The current economic downturn has meant that organisations have had to become leaner. Market leaders remain where they are, because they take advantage of emerging opportunities (Engle, P. 2011). If competition stems from emerging markets around the world, organisations have to be ready and in a position to compete on a level playing field. Without a global mindset, organisations will fall behind their competitors and lose out on the opportunity for growth. If leaders know who their competitors are and understand the framework in which they operate, they are more likely to succeed.

I agree with this article on the importance of understanding cultural capital and global mindsets.
Globalisation has revealed to be a positive force which provides key contributions to global progress and prosperity. During the past decades, globalisation has: raised productivity and employment which is why to be globally competitive, global managers need to have openness that allows a global mindset to form, evolve, and develop. (Kedia,& Mukherji 1999)
The benefit of a global mindset allow companies to have a knowledge and insight into the needs of the local market, and the ability to build cognitive bridges across these needs.(Gupta & Govindarajan, 2002)
In conclusion I feel it is important for international managers to use global mindset to get an understanding for the environment they are working in regard to understanding the cultural beliefs and the cultural policies and procedures. I feel this would allow the individual to be more adaptable and aware of situation which would make them a good international manager.